ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. JL Mag Rare-Earth Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.96%.
As of today (2026-06-29), JL Mag Rare-Earth Co's WACC % is 18.03%. JL Mag Rare-Earth Co's ROIC % is 11.10% (calculated using TTM income statement data).
JL Mag Rare-Earth Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
JL Mag Rare-Earth Co (OTCPK:JMREY) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, JL Mag Rare-Earth Co's WACC % is 18.03%. JL Mag Rare-Earth Co's ROIC % is 11.10% (calculated using TTM income statement data).
JL Mag Rare-Earth Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Metal Fabrication subindustry, JL Mag Rare-Earth Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
JL Mag Rare-Earth Co ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, JL Mag Rare-Earth Co's ROIC % distribution charts can be found below:
* The bar in red indicates where JL Mag Rare-Earth Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JL Mag Rare-Earth Co (JMREY) has a ROIC % of 11.96% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on JL Mag Rare-Earth Co and its competitors.
Is JL Mag Rare-Earth Co's ROIC % too high?
JL Mag Rare-Earth Co's current ROIC % is 11.96%. The Industrial Products industry median ROIC % is 5.21. JL Mag Rare-Earth Co's value of 11.96% is 129.6% above this industry median. Overall, JL Mag Rare-Earth Co has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does JL Mag Rare-Earth Co's ROIC % compare to CRS and ATI?
JL Mag Rare-Earth Co's ROIC % of 11.96% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. JL Mag Rare-Earth Co's value of 11.96% is 129.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.21, based on 3,033 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. JL Mag Rare-Earth Co's current ROIC % of 11.96% is 129.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on JL Mag Rare-Earth Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. JL Mag Rare-Earth Co's current ROIC % is 11.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is JL Mag Rare-Earth Co stock overvalued right now?
Based on GuruFocus' analysis, JL Mag Rare-Earth Co (JMREY) is currently considered Modestly Overvalued. The stock's GF Value™ is $12.59, compared to a current price of $15.50 — trading 23.1% above its estimated fair value. The current ROIC % is 11.96% and 129.6% above the Industrial Products industry median of 5.21. JL Mag Rare-Earth Co's overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For JL Mag Rare-Earth Co (JMREY), the current ROIC % is 11.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is JL Mag Rare-Earth Co (JMREY) Overvalued in 2026?
Based on GuruFocus' analysis, JL Mag Rare-Earth Co stock appears to be overvalued.
The current stock price of $15.50 is trading 23.1% above its estimated GF Value™ of $12.59.
GuruFocus considers JL Mag Rare-Earth Co to be Modestly Overvalued.
Key valuation signals for JMREY:
ROIC %: 11.96%
GF Value™: $12.59 vs. price of $15.50 (23.1% above fair value)
Industry Position: 129.6% above the Industrial Products median
No single metric tells the full story. See the JMREY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
JL Mag Rare-Earth is a leading global producer of high-performance rare-earth permanent magnets. JL Mag focuses on the production and sale of NdFeB PMs, the most widely used type of REPMs, mainly made from an alloy of neodymium (Nd), iron (Fe), and boron (B). The firm is ranked first in the world by high-performance REPMs, according to Frost & Sullivan. JL Mag is also ranked first in the global grain boundary diffusion REPMs market. Its products have a wide array of applications, mainly in new energy vehicles, automotive parts, wind turbine generators, and energy-saving variable-frequency air-conditioners.
70GF Score
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